5 Oversold Software Stocks to Buy According to Wall Street Analysts

2. StoneCo Ltd. (NASDAQ:STNE)

Stock Upside: 106.24%

RSI: 29.27

Number of Hedge Fund Holders: 24

StoneCo Ltd. (NASDAQ:STNE) is one of the oversold software stocks to buy according to Wall Street analysts. On May 14, StoneCo Ltd. (NASDAQ:STNE) shared its Q1 2026 results, reporting that total revenue rose 6.5% year over year to R$3.58 billion (about $679 million), which exceeded the R$3.55 billion that analysts expected. Adjusted EPS reached R$2.19, which although grew 15% year over year, it fell short of the R$2.28 consensus estimate.

StoneCo stated that the revenue growth was driven primarily by its expanding credit business. The business generated R$297 million in credit revenues, up 25% quarter on quarter and 186% year on year. Healthy profitability in payments also contributed, noted StoneCo. It added that these gains more than offset a planned decline in deposit floating revenues, which the company had already begun redirecting as a lower-cost funding source in early 2025.

However, the company noted that the credit growth meant that provisions for credit losses surged and pushed the cost of risk to 21.9%. It also compressed the adjusted gross profit margin from 44.4% in Q1 2025 to 41.6% this quarter.

Because of this performance, StoneCo’s Board of Directors approved the payment of an extraordinary cash dividend of $2.53 per share. Only holders of Class A and Class B shares were eligible for the payment, which the company disbursed on May 4.

StoneCo Ltd. (NASDAQ:STNE) is a financial technology and software company. It provides payment processing, digital banking, and business management solutions for merchants in Brazil.